changing the landscape of the city from mess to modern: lessons learned from kuala lumpur

Changing the landscape of the city Changing the landscape of the city from mess to modern: Lessons learned from mess to modern: Lessons learned

from Kuala Lumpur from Kuala Lumpur

Dr. Wan Nor Azriyati, Dr. Noor Rosly Dr. Wan Nor Azriyati, Dr. Noor Rosly & Dr. Roselina A. Shakir & Dr. Roselina A. Shakir

Centre for Studies of Urban and Regional Real Centre for Studies of Urban and Regional Real Estate (SURE)Estate (SURE)

University of MalayaUniversity of MalayaKuala Lumpur, MalaysiaKuala Lumpur, Malaysia

MALAYSIA

Urban PlanningUrban Planning Urban planning poses a key challenge to city Urban planning poses a key challenge to city

authorities and requires considerable authorities and requires considerable investment, financial, creative or managerial investment, financial, creative or managerial skills. skills.

The practice of urban planning has been defined The practice of urban planning has been defined as “an attempt to formulate the principles that as “an attempt to formulate the principles that should guide us in creating a civilized physical should guide us in creating a civilized physical background of human life .background of human life .

Most importantly, urban planning is argued as Most importantly, urban planning is argued as aiming at securing a reasonable and acceptable aiming at securing a reasonable and acceptable blend of conservation and exploitation of land, blend of conservation and exploitation of land, as the platform for human activityas the platform for human activity..

Dr. Wan Nor Azriyati, Dr. Noor Rosly & Dr. RoselinaDr. Wan Nor Azriyati, Dr. Noor Rosly & Dr. RoselinaUniversity of Malaya, Kuala Lumpur University of Malaya, Kuala Lumpur

22

……Urban PlanningUrban Planning

People live in communities which are becoming People live in communities which are becoming increasingly urban in nature and for which local increasingly urban in nature and for which local governments are increasingly important. governments are increasingly important.

Indeed, many writers argued that while the Indeed, many writers argued that while the conditions are radically different in each locality, conditions are radically different in each locality, people's basic needs are the same: clean water, people's basic needs are the same: clean water, waste disposal, employment, security, basic waste disposal, employment, security, basic health care, etc. health care, etc.

Thus, the role of local government become more Thus, the role of local government become more and more important in responding to local needs and more important in responding to local needs and priorities. and priorities.

Dr Wan Nor Azriyati, Dr. Noor Rosly & Dr. RoselinaDr Wan Nor Azriyati, Dr. Noor Rosly & Dr. Roselina 33University of Malaya, Kuala Lumpur University of Malaya, Kuala Lumpur

Aims of this paperAims of this paper

To examine To examine the role of the state in providing the role of the state in providing opportunity to urban poor to enter home opportunity to urban poor to enter home ownershipownership

To determine to what extent the role of To determine to what extent the role of planning in steering the urban growth fulfill planning in steering the urban growth fulfill the aspirations of low income people to the aspirations of low income people to become part of the home owning democracybecome part of the home owning democracy

Dr Wan Nor Azriyati, Dr Noor Rosly & Dr RoselinaDr Wan Nor Azriyati, Dr Noor Rosly & Dr RoselinaUniversity of Malaya, Kuala Lumpur University of Malaya, Kuala Lumpur

ll

44

Case Study:Case Study: Kuala LumpurKuala Lumpur

The city of Kuala Lumpur, the The city of Kuala Lumpur, the national capital of Malaysia, is the national capital of Malaysia, is the most developed and heavily most developed and heavily populated area in the country. populated area in the country.

It covers an area of 243.6 sq It covers an area of 243.6 sq kilometres. kilometres.

Kuala Lumpur was conferred the Kuala Lumpur was conferred the status as a ‘city’ of Federal Capital in status as a ‘city’ of Federal Capital in 19721972


55

Average Monthly Household Income, Average Monthly Household Income, 1995-19991995-1999

66

0500

1,0001,5002,0002,5003,0003,5004,0004,500

Ave

rag

e M

on

thly

In

com

e

1995 1999

Year

KualaLumpur

Malaysia

Dr Wan Nor Azriyati, Dr Noor Rosly & Dr Roselina,Dr Wan Nor Azriyati, Dr Noor Rosly & Dr Roselina,University of Malaya, Kuala LumpurUniversity of Malaya, Kuala Lumpur

The City Hall of Kuala LumpurThe City Hall of Kuala Lumpur The City Hall of Kuala Lumpur , The City Hall of Kuala Lumpur ,

the administrative body headed the administrative body headed by the Datuk Bandar (Lord by the Datuk Bandar (Lord Mayor) exerts control over the Mayor) exerts control over the city. city.

The Prime Minister of Malaysia The Prime Minister of Malaysia with the consent of the King with the consent of the King appoints the Mayor. appoints the Mayor.

The Mayor is a civil servant and The Mayor is a civil servant and thus, subject to the rules and thus, subject to the rules and guidelines by the Department of guidelines by the Department of Civil Services Civil Services


77

Sources ofSources of revenue for CHKL revenue for CHKL


88

17%

15%

5%4% 3% 5%

51%

Property assessment Charges from planning Returns on investment

Licenses and fines Rentals from flats Assistance from fed govt

Others

The role of state in providing home The role of state in providing home ownership to the low-income peopleownership to the low-income people

The role of state at the national level in meeting housing The role of state at the national level in meeting housing needs of low-income households have evolved from being needs of low-income households have evolved from being an enabler during the early post independence to a an enabler during the early post independence to a distinctive provider role after the establishment of the New distinctive provider role after the establishment of the New Economic Policy (NEP) in early 1970s. Economic Policy (NEP) in early 1970s.

The shift of role to state provider was part of the social The shift of role to state provider was part of the social agenda to create political stability amongst a mixed ethnic agenda to create political stability amongst a mixed ethnic population. population.

However, when the country’s economy was considered However, when the country’s economy was considered relatively mature, the state began to relinquish this role as relatively mature, the state began to relinquish this role as provider and instead shifted the role to the market.provider and instead shifted the role to the market.

Dr Wan Nor Azriyati, Dr Noor Rosly & Dr RoselinaDr Wan Nor Azriyati, Dr Noor Rosly & Dr Roselina

99University of Malaya, Kuala Lumpur University of Malaya, Kuala Lumpur


1010

What is low cost housing?What is low cost housing? the houses which selling prices were fixed the houses which selling prices were fixed

by the government at RM42, 000 (about by the government at RM42, 000 (about US$12,000) per unit US$12,000) per unit

the total built-up area of 600 square feet the total built-up area of 600 square feet depends on the location of the housing depends on the location of the housing scheme. scheme.

The targeted groups would be those The targeted groups would be those squatter colonies, urban poor and low squatter colonies, urban poor and low income citizens whose monthly incomes income citizens whose monthly incomes were below RM1,500 (about US$450)were below RM1,500 (about US$450)

Must register their interest to purchase Must register their interest to purchase through “open registration system”. through “open registration system”.

University of Malaya, Kuala Lumpur University of Malaya, Kuala Lumpur

Housing programmes established by CHKL Housing programmes established by CHKL at the local level. at the local level.

1.1. Housing provided by developer through planning Housing provided by developer through planning permission (30% - 50% low and low medium permission (30% - 50% low and low medium quota)quota)

This programme involved low-cost housing program This programme involved low-cost housing program whereby private developers have to provide at least 30 whereby private developers have to provide at least 30 per cent low cost housing in their housing development as per cent low cost housing in their housing development as planning obligation.planning obligation.

The active participation of the private sector in providing The active participation of the private sector in providing housing for the low income group has been made possible housing for the low income group has been made possible by legislation provided under the Federal Territory by legislation provided under the Federal Territory (Planning) Act 1982 (Act 267) and Town and Country (Planning) Act 1982 (Act 267) and Town and Country Planning 1976 (Act 172). Planning 1976 (Act 172).


1111University of Malaya, Kuala Lumpur University of Malaya, Kuala Lumpur

……Housing programmes established by Housing programmes established by

CHKL at the local levelCHKL at the local level. . 2.2.Privatisation and joint venture projectPrivatisation and joint venture project

City Hall of Kuala Lumpur started its privatisation City Hall of Kuala Lumpur started its privatisation of the land development programme in 1983 to of the land development programme in 1983 to coincide with the privatisation policy coincide with the privatisation policy implemented by the federal government in that implemented by the federal government in that year.year.

In this programme, the state played both the role In this programme, the state played both the role as enabler and provider. CHKL provides the sites as enabler and provider. CHKL provides the sites to be developed whereas the private sector to be developed whereas the private sector constructs the units.constructs the units.

1212Dr Wan Nor Azriyati, Dr Noor Rosly & Dr RoselinaDr Wan Nor Azriyati, Dr Noor Rosly & Dr Roselina


……Housing programmes established by Housing programmes established by CHKL at the local levelCHKL at the local level

3.3.Joint venture project with Employees Joint venture project with Employees Provident Fund (EPF)Provident Fund (EPF)

This program is considered distinct from a normal This program is considered distinct from a normal joint venture project between public and private joint venture project between public and private sector. EPF is a government body, thus this type of sector. EPF is a government body, thus this type of joint venture project demonstrate a public-and-joint venture project demonstrate a public-and-public joint venture programpublic joint venture program

EPF provides the site and finances the project with EPF provides the site and finances the project with interest rate charged at lower than the market interest rate charged at lower than the market rate. CHKL coordinates and monitors the project rate. CHKL coordinates and monitors the project including appointing the contractor to construct the including appointing the contractor to construct the housing unitshousing units

1313Dr Wan Nor Azriyati, Dr Noor Rosly & Dr RoselinaDr Wan Nor Azriyati, Dr Noor Rosly & Dr Roselina


……Housing programmes established by Housing programmes established by CHKL at the local levelCHKL at the local level

4. 4. Integrated public housing programmeIntegrated public housing programme This programme is a special two-prong This programme is a special two-prong

project designed in 1998 to solve the project designed in 1998 to solve the squatters’ problem and to revitalise the squatters’ problem and to revitalise the weak economy due to Asia Financial Crisis weak economy due to Asia Financial Crisis faced by the country. faced by the country.

The thrust of this program is to resettle The thrust of this program is to resettle about 24,000 squatters’ families to a about 24,000 squatters’ families to a formal planned housingformal planned housing

Dr Wan Nor Azriyati, Dr Noor Rosly & Dr RoselinaDr Wan Nor Azriyati, Dr Noor Rosly & Dr RoselinaUniversity of Malaya, Kuala LumpurUniversity of Malaya, Kuala Lumpur

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Case study : Development of Case study : Development of squatters’ area of Kepong squatters’ area of Kepong

The area was formerly known as an The area was formerly known as an unorganized squatters’ colony area at unorganized squatters’ colony area at Kepong located about 8km from city Kepong located about 8km from city centre.centre.

About 1,000 units of squatters in this 88 About 1,000 units of squatters in this 88 acres of CHKL’s land. acres of CHKL’s land.

Dominated by Chinese followed by a small Dominated by Chinese followed by a small percentage of Indians and Malays. percentage of Indians and Malays.


1515

1616

View of typicalView of typical squatters’ settlements in Kuala Lumpur squatters’ settlements in Kuala Lumpur


1717

Low cost flats of Metro Prima, Low cost flats of Metro Prima, KepongKepong

Low cost flats


1818

Low cost units of Metro PrimaLow cost units of Metro Prima •Joint-venture project between private developer and CHKL.•The low-cost flat were first developed to resettle squatters. This phase was completed in August 2000.To be eligible as buyer, the squatters have to register with City Hall of Kuala Lumpur under the Open Registration System. Dr Wan Nor Azriyati, Dr Noor Rosly & Dr RoselinaDr Wan Nor Azriyati, Dr Noor Rosly & Dr Roselina


1919

Building PlanBuilding Plan

Building Plan of Low Cost Unit Mutiara MagnaBuilding Plan of Low Cost Unit Mutiara Magna


2020

Facilities provided for the Facilities provided for the residentsresidents


ll 2121

……Facilities provided for the Facilities provided for the residentsresidents


2222

The households survey The households survey

200 sets of structured questionnaires 200 sets of structured questionnaires were designed for the face-to-face were designed for the face-to-face interviews with the residents of low interviews with the residents of low cost units at Metro Prima, Kepong to cost units at Metro Prima, Kepong to seek their experience on low cost seek their experience on low cost home-ownership.home-ownership.

Dr Wan Nor Azriyati, Dr Noor Rosly and Dr. Roselina,Dr Wan Nor Azriyati, Dr Noor Rosly and Dr. Roselina,University of Malaya, Kuala Lumpur University of Malaya, Kuala Lumpur

2323

The findingsThe findings Almost two third of the occupiers were Almost two third of the occupiers were

enjoying the home-ownership experiences enjoying the home-ownership experiences and were satisfied with their present living and were satisfied with their present living conditions. conditions.

Although the services provided (e.g lift Although the services provided (e.g lift services, cleanliness of the flats) services, cleanliness of the flats) frequently received complaints from the frequently received complaints from the occupiers, the accessibility and the occupiers, the accessibility and the locations of the low-cost houses seem to locations of the low-cost houses seem to overcome all these shortfalls. overcome all these shortfalls.

Most of the owners were reluctant to sell Most of the owners were reluctant to sell their houses. their houses.


Dr Wan Nor Azriyati, Dr Noor Rosly & Dr RoselinaDr Wan Nor Azriyati, Dr Noor Rosly & Dr RoselinaUniversity of MalayaUniversity of Malaya

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Component of RacesComponent of Races

5%4%

28%

63%

OTHERS

MALAY

INDIAN

CHINESE

RACE

others

indian

chinese

malay

race


2525

Status of RespondentStatus of Respondent

21%

79%

TENANT

OWNER

TENANT

OWNER

Figure 4.5: T enure of Respondent

Dr Wan Nor Azriyati, Dr Noor Rosly & Dr RoselinaDr Wan Nor Azriyati, Dr Noor Rosly & Dr RoselinaInternational Conference on China’s Urban Land and Housing in 21International Conference on China’s Urban Land and Housing in 21stst

2626

Occupation and Highest Education Occupation and Highest Education Status of RespondentsStatus of Respondents

OCCUPATION * EDUCATION * GENDER * STATUS Crosstabulation

Count

0 1 0 0 1

1 3 2 3 9

5 0 0 1 6

0 2 1 2 5

9 11 8 3 31

15 17 11 9 52

1 4 3 4 0 1 13

1 1 1 0 1 0 4

1 1 3 1 0 0 6

1 0 1 2 0 0 4

4 6 8 7 1 1 27

0 1 0 1 2

0 2 0 1 3

1 0 0 1 2

2 0 2 2 6

3 3 2 5 13

3 2 1 6

0 0 1 1

0 1 0 1

3 3 2 8

Government Servant

Private Sector

Retired

Self-employment

Unemployment

Total

Private Sector

Retired

Self-employment

Unemployment

Total

Government Servant

Private Sector

Self-employment

Unemployment

Total

Private Sector

Retired

Self-employment

Total

GenderFemale

Male

Female

Male

StatusOwner

Tenant

NonePrimarySchool PMR SPM STPM

College/university

Highest Education Status

Total


2727

Previous residence of RespondentPrevious residence of Respondent Suria MagnaSuria Magna

3%

1%

96%

GOVERNMENT QUARTER'

RENTED ACCOMODATION

SQUATTER AREA

Figure 4.5: Post-living Place of Owner

9%

51%

40%

government quarter

rented accomodation

squatter

owner

Dr Wan Nor Azriyati, Dr Noor Rosly & Dr Roselina,Dr Wan Nor Azriyati, Dr Noor Rosly & Dr Roselina,University of Malaya, Kuala Lumpur University of Malaya, Kuala Lumpur

2828

Perceptions of home-ownership Perceptions of home-ownership experienceexperience

Percent

10080604020

YES. VERY PLEASED

REGRETTED

0

MIXED FEELING11%

5%

84%

Figure 4.6: Satisfaction of Decisin Making on Home-ownership


2929

Willingness of Owners to Transfer Willingness of Owners to Transfer Their OwnershipTheir Ownership

60

40

20

Response

YesNot Sure

0

No

94

66

Figure 4.7: Willingness of Respondent to Reselling the Properties

ConclusionsConclusions

The wide range of policies implemented at the The wide range of policies implemented at the local level has indeed contribute more local level has indeed contribute more opportunity to urban poor to enter home.opportunity to urban poor to enter home.

Most importantly, the state has not only Most importantly, the state has not only successfully in providing opportunity to the urban successfully in providing opportunity to the urban poor to enter home ownership but has also poor to enter home ownership but has also achieve in transforming the former squatters achieve in transforming the former squatters colony into a self-contained township. colony into a self-contained township.

The wish of many residents particularly the The wish of many residents particularly the squatters to remain in an area they are familiar squatters to remain in an area they are familiar with is also successfully met. with is also successfully met.


3030

E-mail: [email protected]: [email protected]

THANK YOUTHANK YOUDr. Wan Nor Azriyati, Dr. Noor Rosly & Dr. Wan Nor Azriyati, Dr. Noor Rosly &

Dr. Roselina A. Shakir Dr. Roselina A. Shakir Centre for Studies of Urban and Regional Centre for Studies of Urban and Regional

Real Estate (SURE)Real Estate (SURE)University of MalayaUniversity of Malaya

Kuala Lumpur Kuala Lumpur

3131

changing the landscape of the city from mess to modern: lessons learned from kuala lumpur

Documents

kuala lumpur dr wan

chkl dr wan

kuala lumpur lcase study

kuala lumpursources

studies of urban

urban poor

urban growth

urban planningurban